Personally, I don't see this measure as being very meaningful. Its mostly one of those token measures that lets politicians claim they are doing something.

1. It is difficult to image people losing their houses to foreclosure while they still have assets in their 401Ks. Most will tap those assets at any cost if they think it will save their homes. The 10% penalty is not much of an impediment.

2. The measure gives people yet another method to tap their 401ks. But those who are determined to get their hands on those funds usually succeed--sometimes for the dumbest reasons.

The moral discussions are largely theoretical in my view. In the real world, it matters little.

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.

Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.